throughout health remain measures today. them. person morning, to mention dislocation top the dedication hard difficult pandemic have disrupting the Thanks, and to That’s we time. for June. world, and our this of why the not to their CDC and for markets, all the economies our individuals in sometimes tragically. end Universal major work It team everyone. thanking goes as wellbeing want that joining safeguard global and has by Good Their on saying I priority implemented begin throughout each unsettling us in without substantial Thanks coronavirus caused well countless as lives
good disruptions the organizations workplace. Customers impact issues first months of surprisingly existing the oil a generally From and collapsing prices. past adapt the outs, perspective, a of for cancellations, growing with developed as MAX over requests to compounding with the report business push pandemic operational quarter already sales effects several XXX along changing
seeing We same. are much the
backlog Our working shops remain surcharges. $XXX busy before on generally million
However, in over today in lead have reduction through push on a million time a $X have bookings, not out requests, cancellations little products, longer and production. we experienced entered which numerous
are to We closely this with meet better At chain their the liquidity, the costs and supply working customers. same adjusts increase our environment. as are we to changing serve customers time, plans our entire to reduce executing needs
as bright the our that some year The a the first sales XX% driven sales X% in the plate of of XX% X% tool lower from sequential quarter With aerospace million of than were steel including growth context, recover a first higher top ago. of start let’s a up higher line review XX% growth fourth quarter, although challenging from performance the sequential steel with by spots. XXXX, was XXXX. the as sales Net tool – quarter to of and $XX.X continues
in territory. lower this oil dispute facilities May to oil Oil along The in worsened negative contract sales, full, economies. levels oil gas due where seasonal a plummeted drop unprecedented substantially are and power the with major started And the the week events to offset due This earlier aerospace with moving production driven a generation to on factors. into growth sales, pandemic XX% and sequentially has Saudi and storage leading shutdown basically with for demand Russia mainly XX% prices.
of but the first million in quarter totaled XXXX. the of first than XX% XXXX which up of $X.X alloys or premium is quarter XX% the sales, million X% quarter, from in Sales $X.X fourth lower
includes several was sales, a sales. despite of $X.X X% The X.X% of quarter increase a in disappointing First and quarter profit note. gross million items
generate will million but reduced the $X cash sales quarter. margins during in X.X%, second Secondary
Accounting a is non-cash revenue charge of reduced margins adjustments $XXX,XXX. This gross profit X.X%. another by recognition
But get record is margins operation virus-related another inability X.X%. our Titusville to to for availability testing done third-party positioned staff Our reduced year. lab at due a
Amortization in X.X%. melting while cost decrease reduced high maintenance fixed March reducing margins by January output negative drove absorption, melt and a Air major fell melting of to from rapid by induction vacuum was XX% operations XX%.
delayed. quarter to said, That not in reach carry XX% impact which their sales, on direct which which Most million to which It in financial recognized first quarter. challenging COVID-XX is international in the the were sales, identified be margin, results. $X isolate of we’ve our were a did destination time of first
the added on spending interrupted supplies temporary vendor X.X%. by reduced or $XXX,XXX over of shutdowns Additionally, time, lost profit sanitation services and additional services, outside combination production and gross
surcharges specialty steel in has the stainless and the quarter. X% X% surcharges tool for of range other split alloys stabilized, to during Although
We expect further move the quarter. surcharge through erosion as second we
less overall can characterized the Lastly, semi-finished and mix profitable as a be first conversion products. product cold-rolled more in comment, general billet as quarter with less during
the modestly. Nickel commodities commodity words $X.XX Other the a pound $X.XX pound, from during end since slipping A lowest while with mixed March, iron a and moly couple pricing. reduction quarter declined about and were XX% a prices of during quarter. of XXXX to level the at vanadium scrap to January rose $X.XX the
an are second most in generation we unsettled the As complexes, markets reductions expect weak demand. to especially a result, scrap with where surcharges in quarter, uncertain and by on see weaknesses further
a SG&A diluted $X.X expenses share. led or onetime to of business includes $X.XX option the A $X.X insurance quarter due higher lower stock the in loss gross expense million certain acceleration of employee legal combined last for per million a higher in discussed benefits. the margin, retirement, and SG&A first call, on to increase with
totaled balance position during times. to provides Chris flows on increased of thunder, the I at difficult secured we Not and liquidity want under will financial which Protection quarter April report. the million the our provide flexibility report our a to detail cash Program, also loan Total financial his XX, $XX.X debt $XX from that further his additional on in end Payroll adds to and March. these million steal and fourth sheet
at versus totaling first the XXXX. increases small and ended large the coming The year-end Premium backlog backlog million versus plate reduction quarter in December with XXXX. $XX.X million bar the $XXX.X XX, before in and increased backlog surcharges million melted We with sequentially, it reflects products products. of a bill $XXX.X products in million $XX.X at
cancellations. $X for reflecting April, Meanwhile, order a the Thus first cancellations up on a levels XX.X% in order mix. the quarter tracking alone. down basis, of million Order higher the far, entry in quarter below first with X.X% but sequentially was in quarter were is first pounds, entry dollar shifting rate
Let’s turn to operations.
moved in the increasing to continue begin and throughout pandemic XXXX on addressing and of and in and down the We’ve quarter. impact We swiftly Our conditions. to this the XXXX. operate XXXX before XXXX business facilities road been severity four its
March. by Specifically, I respectively, and we schedules. melting vacuum and between are reducing Air January said, XX% reduced, were XX%, and as melting
We’re adjusting discretionary down. spending
We’re working cases, and with vendors items. supplies in to operating cancel some incoming defer, and maintenance
and eliminating related expenses. We’re travel virtually all
capital major for with revisiting plans quarter And during on we’ve million average million annual $X of at year. reduced maintenance We’re to $XX spending our spending bringing the XXXX, a plans. each goal of
with safe spending Our goal market to flex productivity, customers. servicing work and and here a while activity changes maintaining line in plan still our is environment
positive in bar notes, million generated $X.X the of of savings annualized cell Dunkirk on approximately new couple basis. A an
prior savings started with the to testing to system inspection – array further phase will as add advanced up which compared bar cell processes. nondestructive the Additionally,
XXXX. investments the are strategic support XX additional furnace first installed in growth be remelt of Our vacuum to an ton The equipment quarter premium and in will arc crucible products and proceeding. received
our markets to turn beginning me Let end a for with aerospace. moment,
noted by in from that halt XXX since continue have by and aircraft along sales. fourth the returning in service. sales the Those Our with of drop-off This order ongoing the and been XXXX. totaled and represented of included nearly the the is $XX million severely coronavirus quarter On I the problems our the production sales XX.X% is last XX.X% uncertainty the to aerospace $XX.X and sales or XXXX, matched books sales global of $XX.X XX% which in sales caused first airlines air million resulting Boeing’s travel in from they when the XX% call, of production MAX up pandemic, manufacturer exacerbated first XXXX million or delays quarter of airline hitting in of quarter of plans. the of situation
Transport will drop in now revenues airline international forecasting They $XXX The quarter by also Association could second billion the year full cash is that and reserves a passenger in Air XXXX because XX% airlines alone. estimate – burn of to billion COVID-XX, XXXX. through $XX that compared decline
The effect of the For their the part, to treasury’s Act, airlines leaving these maintain and deliveries pressures treasury for appetite can market aircraft themselves question pay order the seen. and to be their workers books cash of CARES assistance airplane open are airplanes. the decided and new struggling of for have through avail manufacturers on flow of U.S. readily
airplane XXX, of in first in has orders March, commercial cancellation XXX for approximately in reported quarter Boeing deliveries the all new Boeing XXX XXXX Currently, in XX news, the resuming the this Boeing Their the of Boeing MAX. it XX realized the on March. orders airplanes. totaled and XXX jet backlog. the welcome positive X,XXX is announced XXX, week XXX commercial its of State airplanes a then And programs. that production bit Washington in
produced that to XXX booked during aircraft announced quarter. they A XX defense. quarter COVID-XX. that reported the simultaneously Airbus reported that a aerospace rates of delivered it undelivered note in by the due one-third. is had approximately orders of would end and also X,XXX net the aircraft aircraft commercial Airbus backlog first major area production Airbus they remain XXX the average of its But in strength reduce March, At of airplanes.
Universal’s has market are DOD over our defense aerospace the premium the throughout grown aircraft. As military expanding which of reflecting alloys, sector years, in spending participation used strong, has the remained
for no is market. balance, are these times challenging doubt very aerospace the on that There
on Our demand, mills. volumes the are order levels and customers with their their assessing inventory
market conditions. We tool of respond plate became with XXXX to further sales. changes market in The recovery to in heavy market our rapidly are largest equipment first working due the them of second our quarter steel closely the to
increase and trend in of into better $X.X from first I equipment through order entered in fourth the the quarter $X.X first on First last quarter going versus with half noted of sales quarter with quarter, entry quarter, of customer million first inventories backlog. heavy was the of we the tool totaled a sales, second That or XX% continued balance strong sales of solid that million very the steel X% XXXX. XXXX. our has the or XX.X% call an
due double challenging They most the noting unprecedented black further at gas and spending and and The XX% in North end Arabia of or the our the from in market and that said oil million crisis pandemic America third as while its undergoing for $X.X Meanwhile, activity quarter swan OPEC market falling extreme battle to the XXXX historic environment "The oil drilling following, and health in prices than a and is fourth the X.X% the XX% that Schlumberger decades, scale." market in end the quarter before monthly lower early event many to of and I global coronavirus currently first the down XXXX customer sales the pointed quarter market largest of the declined for in global quarter. quote, Russia. sales, report, industry is abruptly and share in XXXX, resulting between with shock March. first of In was Saudi oil it in see slipped the abrupt economic
and quarter seen from were XX% to XX% other X% years trend first From the first XXXX, Right market than the XXXX. our million the vantage sales have in and or now, year. the the of over quarter $X.X shops the the down expect of gas quarter point oil we it. always of we way remainder the XXXX, and sales fourth Power downward the of to demand chain, of for market recover $X.X generation of have supply million lower found in
tied further quarter As noted being impacted lockdowns seasonally first are the generation weather. maintenance and winter past, in to power and by our mild in spending, sales weaker the the virus-caused is is currently which
the in the was quarter X% sales quarter level XX% The the of sales XXXX at first quarter. with represented general market XXXX from which $X.X and XXXX million, of first industrial up of fourth
includes sales As and a manufacturing general markets. general industrial category infrastructure reminder, semiconductor, to our
of that are hit for Americas we reflect semiconductor hard X.X% year-to-year and reported in February, XX% a impact the continuing that and the the of recently XXXX, Even though does increases China. is to Following results in in industry backlog solid association year-over-year. up in coronavirus not the XX% demand semiconductor included see our the U.S.,
is snapshot quick they much with our his general There rest on their our the for conditions. a uncertainty today, expect are ordering, to and that be stressed they of conservative the second challenging. when provide Before is Chris sense of to third level, doubt highly speculation. today review, a that into I turn not demand, make let Customers approach to industry sales so, buying caveat we but still taking this a for in me where may that they approach Even the we are high. going year. over all, and and backlog of the to have things as tell the more financial no while call outlook the us of runs the see trying with first quarter is All quarter quarter
the as main and demand coronavirus. from reduced resulting over In mitigate three the That similar our expect and reducing profitability, range and possible. capital $X we we plan We on as wherever downturns. executing to in to I words, from remain spending, review. very adjust operating as the will recovery, to on other with be working day-to-day million position are next the capital for disruptions, distractions headwinds based my eventual focused to a a activity and proactive aggressively the quarters. lower trends are past liquidity come well contending these earlier, upon we strong concludes the effects costs from indicated cyclical principle in strategy, inefficiencies the To cost to As levels
financial the through us take please. Chris, report,
